In debt with 10 sub prime cred

Discussion in 'Credit Talk' started by CiRcUs-FrE, Sep 17, 2000.

  1. CiRcUs-FrE

    CiRcUs-FrE Guest

    Ok here is my situation. I have 10 sub prime credit cards ranging from 18% to 24% interest. Been trying to pay them as best I can. Close to about 5000.00 in debt with them. Been trying to get a prime card with a decent balance transfer rate so I can transfer every single balance and just pay the prime card off which would be very simple for me. But I am constantly denied. I tried for Discover Platinum. Always denied. What should I do? Your help is greatly appreciated.
  2. Doris K.

    Doris K. Well-Known Member

    RE: In debt with 10 sub prime

    With that many cards and that much debt, plus the inquiries you're probably racking up by searching for a prime card, your chances of getting anything better are about as close to nil as you're going to get.

    As it stands, you have two reasonable choices. You can work your butt off to pay off the debt, which will mean sacrificing some of your standards of living for a while. Or you can try consolodating some of the debts through a credit counseling organization like CCCS.

    Just keep in mind two important details. First, making only the minimum payment on high-interest cards will pay mostly interest charges, and the debt will remain virtually the same. Also, if you do use CCCS or a similar organization, you should understand that they care little, if any, about your credit rating. They are sponsored by the CRAs and lenders. Their main concern is that the debts are paid off, so the lender doesn't lose any money.

    Good luck, and think out your decisions carefully.
  3. Momof3

    Momof3 Well-Known Member

    RE: In debt with 10 sub prime

    Very good advice Doris, as always:)
  4. Creditinsi

    Creditinsi Guest

    RE: In debt with 10 sub prime

    The only way to get this taken care of is to
    pay them off one by one starting with the
    card with the highest interest first and work your way down the list, or to consolidate your debts into one payment, also once you pay off a card, close the account, too many revolving accounts can damage your credit rating, and I would advice you to stop applying for Platinum credit cards until you have taken care of all these sub prime debts, these inquiries will hurt you as well, Once your credit starts getting cleaned up like clock work you'll start receiving offers for credit cards with better APR's.


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  5. RichGuy

    RichGuy Guest

    RE: In debt with 10 sub prime

    Here's the RichGuy plan:

    (1)Mathematically, the results can be astounding if you pay the mimimum on all cards except your highest interest card. Devoting all your extra payments to that one card keeps you from paying a lot of compound interest in the long run.

    (2) This almost goes without saying, but if you have it, you should cancel any "credit protection" insurance immediately. You've already seen how little good it does for people in over their heads. In some cases, that fraudulent "protection" can almost double your finance charges.

    (3) The cost of credit includes fees as well as interest. Try to cancel any cards with outrageous annual fees, where the annual fee is 8 or 10 percent of the balance.

    (4) Live in the present. If you just make your minimum payments on time and stay under your limits, you're actually making progress. The credit history you build will help you get prime credit in the long run. Of course, you should try to pay down all your balances if possible.

    (5) If Citibank offers you a card, take it! I had a $1000 limit with them at 21% a year ago. Now I have $2800 in transferred balances at 6.9%, with interest fixed until balances are paid off.

    (6) Don't apply for anything that isn't offered to you first. Internet applications are no good for people like you and me.

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